Week 2 (Disc ) Knowledge Management

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Second-Generation Knowledge Management

Mark W. McElroy Macroinnovation Associates, LLC

Knowledge Management Consortium Int’l

KM World October 30, 2001

Our Agenda

b What is KM? — An Industry Standard Reference Model

b Strategy Implications

b 10 Key Principles of Second-Generation KM (Interspersed Throughout Slides)

b What is KM? — An Industry Standard Reference Model

b Strategy Implications

b 10 Key Principles of Second-Generation KM (Interspersed Throughout Slides)

What Is KM? — An Industry Standard Reference Model

Knowledge and the Business Process Environment

Business Process Environment

• Artifacts & Codifications • Individuals and Teams

Business Process Behaviors of

Interacting Agents (Knowledge Use)

Internal/External Events

Organizational Knowledge ‘Containers’

Business Processes Reflect Mutually-Held Knowledge In Practice

Organizational Knowledge Is Embodied In

Agents and Artifacts

Continuous Exposure to Events in the (Business) Environment To Which Organizations React and Adapt By Drawing on Their Mutually-Held Knowledge

But What Happens When Problems Arise?

Business Process Environment

• Artifacts & Codifications • Individuals and Teams

Business Process Behaviors of

Interacting Agents (Knowledge Use)

Internal/External Events

Organizational Knowledge ‘Containers’

Feedback (Including the Detection of Problems)

Individuals and Groups Learn

Learnings and Innovations Are Then Adopted

10 Key Principles of Second-Generation KM

1. Learning and innovation is a social process, not an administrative one (strong affinity with organizational learning theory)

2. Organizational learning and innovation is triggered by the detection of problems

• Individual And Group Learning • Information Acquisition • Knowledge Claim Formulation

Knowledge Claims

Knowledge Claim

Evaluation

Knowledge Production

• Sharing

• Broadcasting

• Searching

• Teaching

Organizat’l Knowledge

Business Process Environment

Industry-Standard Reference Model For KM: The ‘KLC’ Knowledge Integration

• Individuals and Groups • Artifacts & Codifications

Business Process Behaviors of

Interacting Agents (Knowledge Use)

Organizational Knowledge ‘Containers’

Feedback (Including the Detection of Problems)

Distributed Organizational

Knowledge

Internal/External Events

*Source: Knowledge Management Consortium Int’l (www.kmci.org)

Solutions

Not How ‘First-Generation’ KM Has Seen It

Business Process Environment

• Artifacts & Codifications • Individuals and Teams

Business Process Behaviors of

Interacting Agents (Knowledge Use)

Internal/External Events

Organizational Knowledge ‘Containers’ Distributed

Organizational Knowledge

Begins with the convenient assumption that valuable organizational knowledge simply exists

‘All we need to do is capture, codify, and share it’‘All we need to do is capture, codify, and share it’

10 Key Principles of Second-Generation KM

1. Learning and innovation is a social process, not an administrative one (strong affinity with organizational learning theory)

2. Organizational learning and innovation is triggered by the detection of problems

3. Valuable organizational knowledge does not simply exist – people in organizations create it

4. The social pattern of organizational learning and innovation is largely self-organizing, and has regularity to it – a form of capital (SIC)

Knowledge Processing

Knowledge Management

Knowledge Management Versus Knowledge Processing

• Knowledge processing is what organizations do to create and operationalize (use) knowledge • Knowledge management is a management discipline that focuses on enhancing knowledge processing

• Individual And Group Learning • Information Acquisition • Knowledge Claim Formulation

Knowledge Claims

Knowledge Claim

Evaluation

Knowledge Production

• Sharing

• Broadcasting

• Searching

• Teaching

Organizat’l Knowledge

Business Process Environment

Knowledge Integration

• Individuals and Groups • Artifacts & Codifications

Business Process Behaviors of

Interacting Agents (Knowledge Use)

Organizational Knowledge ‘Containers’

Feedback (Including the Detection of Problems)

Distributed Organizational

Knowledge

Internal/External Events Solutions

10 Key Principles of Second-Generation KM

1. Learning and innovation is a social process, not an administrative one (strong affinity with organizational learning theory)

2. Organizational learning and innovation is triggered by the detection of problems

3. Valuable organizational knowledge does not simply exist – people in organizations create it

4. The social pattern of organizational learning and innovation is largely self-organizing, and has regularity to it – a form of capital (SIC)

5. KM is a management discipline that focuses on enhancing knowledge production, integration, and use in organizations

• Individual And Group Learning • Information Acquisition • Knowledge Claim Formulation

Knowledge Claims

Knowledge Claim

Evaluation

Knowledge Production

• Sharing

• Broadcasting

• Searching

• Teaching

Organizat’l Knowledge

Business Process Environment

Knowledge Integration

• Individuals and Groups • Artifacts & Codifications

Business Process Behaviors of

Interacting Agents (Knowledge Use)

Organizational Knowledge ‘Containers’

Feedback (Including the Detection of Problems)

Distributed Organizational

Knowledge

Internal/External Events Solutions

Supply- Versus Demand-Side KM

Some KM strategies focus on knowledge making (demand-side) while others focus on knowledge

sharing and use (supply-side)

Some KM strategies focus on knowledge making (demand-side) while others focus on knowledge

sharing and use (supply-side)

Supply- Side KM

Demand- Side KM

• Individual And Group Learning • Information Acquisition • Knowledge Claim Formulation

Knowledge Claims

Knowledge Claim

Evaluation

Knowledge Production

• Sharing

• Broadcasting

• Searching

• Teaching

Organizat’l Knowledge

Business Process Environment

Knowledge Integration

• Individuals and Groups • Artifacts & Codifications

Business Process Behaviors of

Interacting Agents (Knowledge Use)

Organizational Knowledge ‘Containers’

Feedback (Including the Detection of Problems)

Distributed Organizational

Knowledge

Internal/External Events Solutions

Second-Generation KM

First-generation KM strategies were supply-side only —

second-generation KM focuses on the whole knowledge life cycle

First-generation KM strategies were supply-side only —

second-generation KM focuses on the whole knowledge life cycle

Supply- Side KM

Demand- Side KM

• Individual And Group Learning • Information Acquisition • Knowledge Claim Formulation

Knowledge Claims

Knowledge Claim

Evaluation

Knowledge Production

• Sharing

• Broadcasting

• Searching

• Teaching

Organizat’l Knowledge

Business Process Environment

Knowledge Integration

• Individuals and Groups • Artifacts & Codifications

Business Process Behaviors of

Interacting Agents (Knowledge Use)

Organizational Knowledge ‘Containers’

Feedback (Including the Detection of Problems)

Distributed Organizational

Knowledge

Internal/External Events Solutions

The IT Side of KM

IT Applications of KM Can Support Multiple Facets

of Knowledge Processing

IT Applications of KM Can Support Multiple Facets

of Knowledge Processing

Supply- Side KM

Demand- Side KM

• Individual And Group Learning • Information Acquisition • Knowledge Claim Formulation

Knowledge Claims

Knowledge Claim

Evaluation

Knowledge Production

• Sharing

• Broadcasting

• Searching

• Teaching

Organizat’l Knowledge

Business Process Environment

Knowledge Integration

• Individuals and Groups • Artifacts & Codifications

Business Process Behaviors of

Interacting Agents (Knowledge Use)

Organizational Knowledge ‘Containers’

Feedback (Including the Detection of Problems)

Distributed Organizational

Knowledge

Internal/External Events Solutions

The People/Process Side of KM

Focusing on knowledge processes and related social conventions, such as individual learning and communities of practice policies and programs is also important

Supply- Side KM

Demand- Side KM

10 Key Principles of Second-Generation KM

1. Learning and innovation is a social process, not an administrative one (strong affinity with organizational learning theory)

2. Organizational learning and innovation is triggered by the detection of problems

3. Valuable organizational knowledge does not simply exist – people in organizations create it

4. The social pattern of organizational learning and innovation is largely self-organizing, and has regularity to it – a form of capital (SIC)

5. KM is a management discipline that focuses on enhancing knowledge production, integration, and use in organizations

6. KM is not an application of IT – rather, KM sometimes uses IT to help it have impact on the social dynamics of knowledge processing

• Individual And Group Learning • Information Acquisition • Knowledge Claim Formulation

Knowledge Claims

Knowledge Claim

Evaluation

Knowledge Production

• Sharing

• Broadcasting

• Searching

• Teaching

Organizat’l Knowledge

Business Process Environment

Knowledge Integration

• Individuals and Groups • Artifacts & Codifications

Business Process Behaviors of

Interacting Agents (Knowledge Use)

Organizational Knowledge ‘Containers’

Feedback (Including the Detection of Problems)

Distributed Organizational

Knowledge

Internal/External Events Solutions

...Make Decisions On Behalf Of People Operating On The ‘Front Lines’

What Investments in KM Cannot Do...

KM Has Direct Impact On Knowledge Processing Outcomes,

But Only Indirect Impact On Business Outcomes

KM Has Direct Impact On Knowledge Processing Outcomes,

But Only Indirect Impact On Business Outcomes

KM Is An Industry That Often Overpromises

• One vendor of KM-related software asks in its ads:

Did Knowledge Management deliver on its promises for you?

• KM can help enable and support these things, but it cannot ‘deliver’ them – what KM has impact on is knowledge processing, not business outcomes

• Are your people more productive? • Is your organization more efficient? • Has KM reduced costs?

A necessary but insufficient condition for performance A necessary but insufficient condition for performance

10 Key Principles of Second-Generation KM

7. KM interventions can only have direct impact on knowledge processing outcomes, not business outcomes – impact on business outcomes is indirect

8. KM’s value proposition? KM enhances an organization’s capacity to adapt by improving its ability to learn and innovate, and to detect and solve problems

[ Note: Enhancements in knowledge processing (KP) will not necessarily lead to improvements in business performance, but improvements in business performance rarely occur without them. Here, KM has a crucial role to play – KM makes high-performance KP possible!]

• Sharing

• Broadcasting

• Searching

• Teaching

Organizat’l Knowledge

Business Process Environment

Knowledge Integration (Diffusion)

• Artifacts & Codifications • Individuals and Teams

Business Process Behaviors of

Interacting Agents (Knowledge Use)

Organizational Knowledge ‘Containers’

Distributed Organizational

Knowledge

But Most KM Strategies Are Only Supply-Side In Scope

Supply-Side KM Strategies Are All About Knowledge

Capture, Codification, Distribution, and Use

Supply-Side KM Strategies Are All About Knowledge

Capture, Codification, Distribution, and Use

• Sharing

• Broadcasting

• Searching

• Teaching

Organizat’l Knowledge

Business Process Environment

Knowledge Integration (Diffusion)

• Artifacts & Codifications • Individuals and Teams

Business Process Behaviors of

Interacting Agents (Knowledge Use)

Organizational Knowledge ‘Containers’

Distributed Organizational

Knowledge

Also IT-Centric and Transaction Oriented

Tend To Be Technology- Centric And Focus On

Getting ‘The Right Info To The Right People At

The Right Time’

Tend To Be Technology- Centric And Focus On

Getting ‘The Right Info To The Right People At

The Right Time’

• Sharing

• Broadcasting

• Searching

• Teaching

Organizat’l Knowledge

Business Process Environment

Knowledge Integration (Diffusion)

• Artifacts & Codifications • Individuals and Teams

Business Process Behaviors of

Interacting Agents (Knowledge Use)

Organizational Knowledge ‘Containers’

Distributed Organizational

Knowledge

But Most So-Called KM Applications Are Not KM

IT Applications that are not KM: • Enterprise Information Portals • Document Management • Content management • Data Warehousing • Imaging

These may be associated with KM, but they’re not the same as KM

Why? What Are The Critical Differences Between Information Management and KM?

• Two major differences: – KM concerns itself with statements or claims made about the

value, veracity, or context of beliefs or actions – Also with the production of related claims (‘knowledge

claims’) and ways they are validated, shared, and used

• Information management: – Tends to be aimed at managing work products and their

informational content and/or attributes (production-related descriptive data), not claims about value, veracity, or context

– Nor the business processes and supporting systems that accompany the production, distribution, and use of related ‘knowledge’ (i.e., not with ‘knowledge processing’)

IM can support KM strategies – not the same as KMIM can support KM strategies – not the same as KM

10 Key Principles of Second-Generation KM

7. KM interventions can only have direct impact on knowledge processing outcomes, not business outcomes – impact on business outcomes is indirect

8. KM’s value proposition? KM enhances an organization’s capacity to adapt by improving its ability to learn and innovate, and to detect and solve problems

9. If it doesn’t address value, veracity, or context, it’s not ‘knowledge management’

Other Applications of IT That May Be KM

• Groupware systems – Virtual teaming and collaboration, if associated

with the production or distribution of knowledge (supply- and/or demand-side KM initiatives)

– But only if they deal with the production, distribution, or use of claims related to the value, veracity, or context of work products or their informational content

• Any other application, as long as it deals with claims related to the value, veracity, or context of intellectual objects or content

KM Strategy Implications

• Individual And Group Learning • Information Acquisition • Knowledge Claim Formulation

Knowledge Claims

Knowledge Claim

Evaluation

Knowledge Production

• Sharing

• Broadcasting

• Searching

• Teaching

Organizat’l Knowledge

Business Process Environment

Knowledge Integration

• Individuals and Groups • Artifacts & Codifications

Business Process Behaviors of

Interacting Agents (Knowledge Use)

Organizational Knowledge ‘Containers’

Feedback (Including the Detection of Problems)

Distributed Organizational

Knowledge

Internal/External Events Solutions

Remember, The Target Domain Is A ‘Social System’

KM Strategies Should First Be About Social Interventions and Only Secondarily About IT KM Strategies Should First Be About Social Interventions and Only Secondarily About IT

Demand-Side KM Supply-Side KM

Social Dimension (People and Process)

Technology Dimension

(IT)

Demand-Side Social KM

Demand-Side Technology KM

Supply-Side Social KM

Supply-Side Technology KM

Four Areas of Focus For KM

Demand-Side KM Supply-Side KM

Social Dimension (People and Process)

Technology Dimension

(IT)

• Individual Learning • Group Learning • Innovation & IC Mgmt • Communities of Inquiry • KAIZEN Events in Mfg • Think Tanks • Management Planning

• Training Programs • Communities of Practice (CoP) • Knowledge Capture • Storytelling • KM Cultural Initiatives • Operations Mgmt

Some Examples of Common KM Initiatives

• Knowledge Portals • Innovation Mgmt Tools • Groupware - Collaboration Apps - Virtual Teaming Tools - E-mail • Listserv Discuss’n Grps

• Information Portals • Intranets • Information Mgmt • Work Product Mgmt • Content Mgmt • Imaging • Groupware

Demand-Side Social KM

Demand-Side Technology

Supply-Side Technology

Supply-Side Social KM

Program Interventions

Fulfillments of Management

Policies

Policy Interventions Management

Guidelines and Direction

Interventions Are of Two Types – Both Very Important

Total of 8 dimensions to a KM strategy, but most fail to address policy issues

Example: 3M Company’s ‘Demand-Side Social KM’

Demand-Side Social KM

Demand-Side Technology

Supply-Side Technology

Supply-Side Social KM

Demand-Side Social KM ‘Policies’

Demand-Side Social KM ‘Programs’

Policy: Employees shall have meaningful opportunities to engage in self-directed learning

Program: 3M’s ‘Fifteen Percent Rule – employees may spend up to 15% of their time on self-chosen, self-managed learning, with full management support

Synchronization very important!

Demand-Side Social KM

Demand-Side Technology

Supply-Side Technology

Supply-Side Social KM

Supply-Side Technology

KM ‘Programs’

Most KM Interventions (1st Gen) Focus Only On SS Issues

Most KM initiatives fail to address 75% of their scope!Most KM initiatives fail to address 75% of their scope!

Supply-Side Social

KM ‘Programs’

Demand-Side KM Supply-Side KM

Social Dimension (People and Process)

Technology Dimension

(IT)

Demand-Side Social KM

Demand-Side Technology KM

Supply-Side Social KM

Supply-Side Technology KM

So, What’s The Proper Scope of a KM Strategy?

Begin by choosing areas of focus – if not all,why?Begin by choosing areas of focus – if not all,why?

Demand-Side Social KM

Demand-Side Technology

Supply-Side Technology

Supply-Side Social KM

Program Interventions

Fulfillments of Management

Policies

Policy Interventions Management

Guidelines and Direction

Proper Scope of KM Strategy (cont.)

Scope should include treatment of both policies and programs – alignment is key Scope should include treatment of both

policies and programs – alignment is key

Proper Scope of KM Strategy (cont.)

(Continued)

Demand-Side KM Supply-Side KM

Social Dimension (People and Process)

Technology Dimension

(IT)

Demand-Side Social KM

Demand-Side Technology KM

Supply-Side Social KM

Supply-Side Technology KM

I. Makes sense to start with supply-side issues: – Can focus on information needs of workers

engaged in business processes – Barrier-free access to people and

information needed to get the job done – Related technology infrastructures and

information management tools and systems, as needed

– But also the people/process side: teaming and community infrastructures, processes, standards, and supporting programs

Proper Scope of KM Strategy (cont.)

(Continued)

Demand-Side KM Supply-Side KM

Social Dimension (People and Process)

Technology Dimension

(IT)

Demand-Side Social KM

Demand-Side Technology KM

Supply-Side Social KM

Supply-Side Technology KM

II. Then don’t forget the demand-side: – Valuable knowledge comes from

somewhere – people ‘on the job’ create it

– Need to provide for that, too • Individual learning and innovation • Group learning and innovation • Support for ‘whole firm’ L & I, too

– It’s the front-end of ‘knowledge processing’ – Has its own set of people, process and technology issues – Takes KM into the realm of innovation management where

very much belongs

Proper Scope of KM Strategy (cont.)

Demand-Side KM Supply-Side KM

Social Dimension (People and Process)

Technology Dimension

(IT)

Demand-Side Social KM

Demand-Side Technology KM

Supply-Side Social KM

Supply-Side Technology KM

(Continued)

III. Next is operationalizing KM: – KM warrants its own operations – Not just a by-product of ‘knowledge

work’ by knowledge workers – And not just a part of IT – Need to ask:

“Will we institutionalize KM or not?” – What are the organizational issues associated with its

permanent implementation? • Staffing • Budget

– Where does KM fit in the organizational model of the firm?

Proper Scope of KM Strategy (cont.)

Demand-Side KM Supply-Side KM

Social Dimension (People and Process)

Technology Dimension

(IT)

Demand-Side Social KM

Demand-Side Technology KM

Supply-Side Social KM

Supply-Side Technology KM

IV. Finally, reconciling KM vs. ‘business strategy’: – Most KM methodologies begin with

commission of a first-generation sin • ‘Business strategy knowledge exists’ • ‘Purpose of KM is to serve the supply-

side interests of existing business strategy knowledge’

• KM reduced to a knowledge capture, codification, and sharing plan for a set of existing knowledge (this is IM; supply-side KM at most)

– Begins by granting ‘strategy’ special dispensation from the social learning and innovation process – an Orwellian flaw

– Fails to acknowledge business strategy as, itself, a product of organizational learning and innovation

10 Key Principles of Second-Generation KM

7. KM interventions can only have direct impact on knowledge processing outcomes, not business outcomes – impact on business outcomes is indirect

8. KM’s value proposition? KM enhances an organization’s capacity to adapt by improving its ability to learn and innovate, and to detect and solve problems

9. If it doesn’t address value, veracity, or context, it’s not ‘knowledge management’

10. Business strategy is subordinate to KM strategy, not the reverse, because business strategy is, itself, a product of knowledge processing – KM is not an implementation tool for strategy; strategy follows from KP and is, therefore, downstream from KM

• Individual And Group Learning • Information Acquisition • Knowledge Claim Formulation

Knowledge Claims

Knowledge Claim

Evaluation

Knowledge Production

• Sharing

• Broadcasting

• Searching

• Teaching

Organizat’l Knowledge

Business Process Environment

Knowledge Integration

• Individuals and Groups • Artifacts & Codifications

Business Process Behaviors of

Interacting Agents (Knowledge Use)

Organizational Knowledge ‘Containers’

Feedback (Including the Detection of Problems)

Distributed Organizational

Knowledge

Internal/External Events Solutions

Remember……….

Getting this thing to run well is the end-game – indeed, the fundamental purpose – of knowledge management! Getting this thing to run well is the end-game – indeed, the fundamental purpose – of knowledge management!

Thank You!

Contact Information

Mark W. McElroy Macroinnovation Associates, LLC

10 Ogden’s Mill Road Windsor, VT 05089

[email protected]

(802) 436-2250